FILE s487.is
          104th CONGRESS
          1st Session
          To amend the Indian Gaming Regulatory Act, and for other purposes.
                           IN THE SENATE OF THE UNITED STATES
                      March 2 (legislative day, February 22), 1995
          Mr. McCain (for himself and Mr. Inouye) introduced the following
              bill; which was read twice and referred to the Committee on
              Indian Affairs
                                         A BILL
          To amend the Indian Gaming Regulatory Act, and for other purposes.
            Be it enacted by the Senate and House of Representatives of the
          United States of America in Congress assembled,
          SECTION 1. SHORT TITLE.
            This Act may be cited as the `Indian Gaming Regulatory Act
          Amendments Act of 1995'.
          SEC. 2. AMENDMENTS TO THE INDIAN GAMING REGULATORY ACT.
            The Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.) is
          amended--
                (1) by striking the first section and inserting the following
              new section:
          `SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
            `(a) Short Title: This Act may be cited as the `Indian Gaming
          Regulatory Act'.
            `(b) Table of Contents: The table of contents for this Act is as
          follows:
          `Sec. 1. Short title; table of contents.
          `Sec. 2. Congressional findings.
          `Sec. 3. Purposes.
          `Sec. 4. Definitions.
          `Sec. 5. Establishment of the Federal Indian Gaming Regulatory
              Commission.
          `Sec. 6. Powers of the Chairperson.
          `Sec. 7. Powers and authority of the Commission.
          `Sec. 8. Regulatory framework.
          `Sec. 9. Advisory Committee on Minimum Regulatory Requirements and
              Licensing Standards.
          `Sec. 10. Licensing.
          `Sec. 11. Requirements for the conduct of class I and class II
              gaming on Indian lands.
          `Sec. 12. Class III gaming on Indian lands.
          `Sec. 13. Review of contracts.
          `Sec. 14. Review of existing contracts; interim authority.
          `Sec. 15. Civil penalties.
          `Sec. 16. Judicial review.
          `Sec. 17. Commission funding.
          `Sec. 18. Authorization of appropriations.
          `Sec. 19. Miscellaneous.
          `Sec. 20. Dissemination of information.
          `Sec. 21. Severability.
          `Sec. 22. Criminal penalties.
          `Sec. 23. Conforming amendment.
          `Sec. 24. Definition of financial institutions.';
                (2) by striking sections 2 through 19 and inserting the
              following new sections:
          `SEC. 2. CONGRESSIONAL FINDINGS.
            `The Congress finds that--
                `(1) Indian tribes are--
                    `(A) engaged in the operation of gaming activities on
                  Indian lands as a means of generating tribal governmental
                  revenue; and
                    `(B) licensing such activities;
                `(2) clear Federal standards and regulations for the conduct
              of gaming on Indian lands will assist tribal governments in
              assuring the integrity of gaming activities conducted on Indian
              lands;
                `(3) a principal goal of Federal Indian policy is to promote
              tribal economic development, tribal self-sufficiency, and
              strong tribal government;
                `(4) while Indian tribes have the right to regulate the
              operation of gaming activities on Indian lands if such gaming
              activities are--
                    `(A) not specifically prohibited by Federal law; and
                    `(B) conducted within a State that as a matter of public
                  policy permits such gaming activities,
              Congress has the authority to regulate the privilege of doing
              business with Indian tribes in Indian country (as defined in
              section 1151 of title 18, United States Code);
                `(5) systems for the regulation of gaming activities on
              Indian lands should meet or exceed federally established
              minimum regulatory requirements;
                `(6) the operation of gaming activities on Indian lands has
              had a significant impact on commerce with foreign nations,
              among the several States and with the Indian tribes; and
                `(7) the Constitution vests the Congress with the powers to
              regulate Commerce with foreign Nations, and among the several
              States, and with the Indian Tribes, and this Act is enacted in
              the exercise of those powers.
          `SEC. 3. PURPOSES.
            `The purposes of this Act are--
                `(1) to ensure the right of Indian tribes to conduct gaming
              activities on Indian lands in a manner consistent with the
              decision of the Supreme Court in California et al. v. Cabazon
              Band of Mission Indians et al. (480 U.S. 202, 107 S. Ct. 1083,
              94 L. Ed. 2d 244 (1987)), involving the Cabazon and Morongo
              Bands of Mission Indians;
                `(2) to provide a statutory basis for the conduct of gaming
              activities on Indian lands as a means of promoting tribal
              economic development, self-sufficiency, and strong Indian
              tribal governments;
                `(3) to provide a statutory basis for the regulation of
              gaming activities on Indian lands by an Indian tribe adequate
              to shield such activities from organized crime and other
              corrupting influences, to ensure that an Indian tribal
              government is the primary
          beneficiary of the operation of gaming activities, and to ensure
          that gaming is conducted fairly and honestly by both the operator
          and players; and
                `(4) to declare that the establishment of independent Federal
              regulatory authority for the conduct of gaming activities on
              Indian lands and the establishment of Federal minimum
              regulatory requirements for the conduct of gaming activities on
              Indian lands are necessary to protect such gaming.
          `SEC. 4. DEFINITIONS.
            `For purposes of this Act, the following definitions shall apply:
                `(1) Applicant: The term `applicant' means any person who
              applies for a license pursuant to this Act, including persons
              applying for a renewal of a license.
                `(2) Advisory committee: The term `Advisory Committee' means
              the Advisory Committee on Minimum Regulatory Requirements and
              Licensing Standards established under section 9(a).
                `(3) Attorney general: The term `Attorney General' means the
              Attorney General of the United States.
                `(4) Chairperson: The term `Chairperson' means the
              Chairperson of the Federal Indian Gaming Regulatory Commission
              established under section 5.
                `(5) Class i gaming: The term `class I gaming' means social
              games played solely for prizes of minimal value or traditional
              forms of Indian gaming engaged in by individuals as a part of,
              or in connection with, tribal ceremonies or celebrations.
                `(6) Class ii gaming:
                    `(A) In general: The term `class II gaming' means--
                        `(i) the game of chance commonly known as bingo or
                      lotto including, if played in the same location,
                      pull-tabs, punch boards, tip jars, instant bingo, and
                      other games similar to bingo (whether or not
                      electronic, computer, or other technologic aids are
                      used in connection therewith)--
            `(I) which is played for prizes, including monetary prizes, with
          cards bearing numbers or other designations;
            `(II) in which the holder of the card covers such numbers or
          designations when objects, similarly numbered or designated, are
          drawn or electronically determined; and
            `(III) in which the game is won by the first person covering a
          previously designated arrangement of numbers or designations on
          such cards; and
                        `(ii) card games that--
            `(I) are explicitly authorized by the laws of a State; or
            `(II) are not explicitly prohibited by the laws of a State and
          are played at any location in the State, but only if such card
          games are played in conformity with any such laws (including
          regulations) of the State regarding hours or periods of operation
          of such card games or limitations on wagers or pot sizes in such
          card games.
                    `(B) Exclusions: The term `class II gaming' does not
                  include--
                        `(i) any banking card games, including baccarat,
                      chemin de fer, or blackjack (21); or
                        `(ii) gambling devices, as defined in paragraph (11),
                      except for any class II game that is played under
                      subparagraph (A)(i) with technologic aid that has been
                      approved by the Commission.
                    `(C) Treatment of certain games: Notwithstanding any
                  other provision of this paragraph, the term `class II
                  gaming' includes those card games played in the State of
                  Michigan, the State of North Dakota, the State of South
                  Dakota, or the State of Washington, that, on or before May
                  1, 1988, were actually operated in such State by an Indian
                  tribe, but only to the extent of the nature and scope of
                  the card games that were actually operated by an Indian
                  tribe in such State on or before such date, as determined
                  by the Commission (as defined in paragraph (8)).
                `(7) Class iii gaming: The term `class III gaming' means all
              forms of gaming that are not class I gaming or class II gaming.
                `(8) Commission: The term `Commission' means the Federal
              Indian Gaming Regulatory Commission established under section 5.
                `(9) Compact: The term `compact' means an agreement relating
              to the operation of class III gaming on Indian lands entered
              into by an Indian tribe and a State, that is approved by the
              Secretary, or an agreement relating to the operation of class
              III gaming that is negotiated by an Indian tribe and the
              Secretary, and approved by the Secretary.
                `(10) Electronic, computer, or other technologic aid: The
              term `electronic, computer, or other technologic aid', in
              connection with class II gaming, means a device, such as a
              computer, telephone, cable, television, satellite, or bingo
              blower, that, when used--
                    `(A) is not a game of chance or a gambling device;
                    `(B) merely assists a player or the playing of a game; and
                    `(C) is operated according to applicable Federal
                  communications law.
                `(11) Electronic or electromechanical facsimile: The term
              `electronic or electromechanical facsimile' means any gambling
              device, as defined in paragraph (12).
                `(12) Gambling device: The term `gambling device' means--
                    `(A) any gambling device, as defined in section 1(a) of
                  the Act of January 2, 1951 (commonly referred to as the
                  `Gambling Devices Transportation Act') (64 Stat. 1134,
                  chapter 1194; 15 U.S.C. 1171(a)), including any electronic
                  or electromechanical facsimile; and
                    `(B) does not include a technological aid to class II
                  gaming that is approved by the Commission.
                `(13) Gaming-related contract: The term `gaming-related
              contract' means any agreement for an amount of more than
              $50,000 per year--
                    `(A) under which an Indian tribe or an agent of any
                  Indian tribe procures gaming materials, supplies,
                  equipment, or services that are used in the conduct of a
                  class II or class III gaming activity, or
                    `(B) financing contracts or agreements for any facility
                  in which a gaming activity is to be conducted.
                `(14) Gaming-related contractor: The term `gaming-related
              contractor' means any person who enters into a gaming-related
              contract with an Indian tribe or an agent of an Indian tribe,
              including any person with a financial interest in such contract.
                `(15) Gaming service industry: The term `gaming service
              industry' means any form of enterprise that provides goods or
              services that are used in conjunction with any class II or
              class III gaming activity, in any case in which--
                    `(A) the proposed agreement between the enterprise and a
                  class II or class III gaming operation, or the aggregate of
                  such agreements is for an amount of not less than $100,000
                  per year; or
                    `(B) the amount of business conducted by such enterprise
                  with any gaming operation in the 1-year period preceding
                  the effective date of such agreement was not less than
                  $250,000.
                `(16) Indian lands: The term `Indian lands' means--
                    `(A) all lands within the limits of any Indian
                  reservation; and
                    `(B) any lands--
                        `(i) the title to which is held in trust by the
                      United States for the benefit of any Indian tribe; or
                        `(ii) the title to which is--
            `(I) held by an Indian tribe subject to a restriction by the
          United States against alienation;
            `(II) held by the United States for the benefit of an individual
          Indian; or
            `(III) held by an individual subject to restriction by the United
          States against alienation; and
                        `(iii) over which an Indian tribe exercises
                      governmental power.
                `(17) Indian tribe: The term `Indian tribe' means any Indian
              tribe, band, nation, or other organized group or community of
              Indians that--
                    `(A) is recognized as eligible by the Secretary for the
                  special programs and services provided by the United States
                  to Indians because of their status as Indians; and
                    `(B) is recognized as possessing powers of self-government.
                `(18) Key employee: The term `key employee' means any
              individual employed in a gaming operation licensed pursuant to
              this Act in a supervisory capacity or empowered to make any
              discretionary decision with regard to the gaming operation,
              including any pit boss, shift boss, credit executive, cashier
              supervisor, gaming facility manager or assistant manager, or
              manager or supervisor of security employees.
                `(19) Management contract: The term `management contract'
              means any contract or collateral agreement between an Indian
              tribe and a contractor, if such contract or agreement provides
              for the management of all or part of a gaming operation.
                `(20) Management contractor: The term `management contractor'
              means any person entering into a management contract with an
              Indian tribe or an agent of the Indian tribe for the management
              of a gaming operation, including any person with a financial
              interest in such contract.
                `(21) Material control: The term `material control' means the
              exercise of authority or supervision or the power to make or
              cause to be made any discretionary decision with regard to
              matters which have a substantial effect on the financial or
              management aspects of a gaming operation.
                `(22) Net revenues: The term `net revenues' means the gross
              revenues of an Indian gaming activity reduced by the sum of--
                    `(A) any amounts paid out or paid for as prizes; and
                    `(B) the total operating expenses associated with the
                  gaming activity, excluding management fees.
                `(23) Person: The term `person' means an individual, firm,
              corporation, association, partnership, trust, consortium, joint
              venture, entity, or gaming operation.
                `(24) Secretary: The term `Secretary' means the Secretary of
              the Interior.
          `SEC. 5. ESTABLISHMENT OF THE FEDERAL INDIAN GAMING REGULATORY
                            COMMISSION.
            `(a) Establishment: There is established as an independent agency
          of the United States, a Commission to be known as the Federal
          Indian Gaming Regulatory Commission. Such Commission shall be an
          independent establishment, as defined in section 104 of title 5,
          United States Code.
            `(b) Composition of the Commission:
                `(1) In general: The Commission shall be composed of 3
              full-time members, who shall be appointed by the President, by
              and with the advice and consent of the Senate.
                `(2) Citizenship of members: Each member of the Commission
              shall be a citizen of the United States.
                `(3) Requirements for members: No member of the Commission
              may--
                    `(A) pursue any other business or occupation or hold any
                  other office;
                    `(B) be actively engaged in or, other than through
                  distribution of gaming revenues as a member of an Indian
                  tribe, have any direct pecuniary interest in gaming
                  activities;
                    `(C) other than through distribution of gaming revenues
                  as a member of an Indian tribe, have any pecuniary interest
                  in any business or organization that holds a gaming license
                  under this Act or that does business with any person or
                  organization licensed under this Act;
                    `(D) have been convicted of a felony or gaming offense; or
                    `(E) have any financial interest in, or management
                  responsibility for, any gaming-related contract or any
                  other contract approved pursuant to this Act.
                `(4) Political affiliation:
                    `(A) In general: Not more than 2 members of the
                  Commission shall be members of the same political party. In
                  making appointments to the Commission, the President shall
                  appoint members of different political parties, to the
                  extent practicable.
                    `(B) Tribal membership: At least 2 members of the
                  Commission shall each be a member of a federally recognized
                  Indian tribe. No 2 members appointed under this
                  subparagraph shall be members of the same Indian tribe.
                `(5) Additional requirements: The Commission shall be
              composed of the most qualified individuals available, subject
              to the following conditions:
                    `(A) Certified public accountant representation: One
                  member of the Commission shall be a certified public
                  accountant with not less than 5 years of progressively
                  responsible experience in accounting and auditing, and a
                  comprehensive knowledge of the principles and practices of
                  corporate finance.
                    `(B) Law enforcement representation: One member of the
                  Commission shall be selected with special reference to
                  training and experience in the fields of investigation or
                  law enforcement.
                `(6) Background investigations: The Attorney General shall
              conduct a background investigation concerning any individual
              under consideration for appointment to the Commission, with
              particular regard to the financial stability, integrity,
              responsibility, and reputation for good character, honesty, and
              integrity of the nominee.
            `(c) Chairperson: The President shall select a Chairperson from
          among the members appointed to the Commission.
            `(d) Vice Chairperson: The Commission shall select, by majority
          vote, one of the members of the Commission to serve as Vice
          Chairperson. The Vice Chairperson shall--
                `(1) serve as Chairperson of the Commission in the absence of
              the Chairperson; and
                `(2) exercise such other powers as may be delegated by the
              Chairperson.
            `(e) Terms of Office:
                `(1) In general: Each member of the Commission shall hold
              office for a term of 5 years.
                `(2) Initial appointments: Initial appointments to the
              Commission shall be made for the following terms:
                    `(A) The Chairperson shall be appointed for a term of 5
                  years.
                    `(B) One member shall be appointed for a term of 4 years.
                    `(C) One member shall be appointed for a term of 3 years.
                `(3) Limitation: No member shall serve for more than 2 terms
              of 5 years each.
            `(f) Vacancies:
                `(1) In general: Each individual appointed by the President
              to serve as Chairperson and each member of the Commission
              shall, unless removed for cause under paragraph (2), serve in
              the capacity for which such individual is appointed until the
              expiration of the term of such individual or until a successor
              is duly appointed and qualified.
                `(2) Removal from office: The Chairperson or any member of
              the Commission may only be removed from office before the
              expiration of the term of office by the President for neglect
              of duty, malfeasance in office, or for other good cause shown.
                `(3) Term to fill vacancies: The term of any member appointed
              to fill a vacancy on the Commission shall be for the unexpired
              term of the member.
            `(g) Quorum: Two members of the Commission shall constitute a
          quorum.
            `(h) Meetings:
                `(1) In general: The Commission shall meet at the call of the
              Chairperson or a majority of the members of the Commission.
                `(2) Majority of members determine action: A majority of the
              members of the Commission shall determine any action of the
              Commission.
            `(i) Compensation:
                `(1) Chairperson: The Chairperson shall be paid at a rate
              equal to that of level IV of the Executive Schedule under
              section 5316 of title 5, United States Code.
                `(2) Other members: Each other member of the Commission shall
              be paid at a rate equal to that of level V of the Executive
              Schedule under section 5316 of title 5, United States Code.
                `(3) Travel: All members of the Commission shall be
              reimbursed in accordance with title 5, United States Code, for
              travel, subsistence, and other necessary expenses incurred by
              them in the performance of their duties.
            `(j) Administrative Support Services: The Administrator of
          General Services shall provide to the Commission on a reimbursable
          basis such administrative support services as the Commission may
          request.
          `SEC. 6. POWERS OF THE CHAIRPERSON.
            `(a) Chief Executive Officer: The Chairperson shall serve as the
          chief executive officer of the Commission.
            `(b) Administration of the Commission:
                `(1) In general: Subject to subsection (c), the Chairperson--
                    `(A) shall employ and supervise such personnel as the
                  Chairperson considers necessary to carry out the functions
                  of the Commission, and assign work among such personnel;
                    `(B) shall appoint a General Counsel to the Commission
                  who shall be paid at the annual rate of basic pay payable
                  for ES-6 of the Senior Executive Service Schedule under
                  section 5382 of title 5, United States Code;
                    `(C) shall appoint and supervise other staff of the
                  Commission without regard to the provisions of title 5,
                  United States Code, governing appointments in the
                  competitive service;
                    `(D) may procure temporary and intermittent services
                  under section 3109(b) of title 5, United States Code, but
                  at rates for individuals not to exceed the daily equivalent
                  of the maximum annual rate of basic pay payable for ES-6 of
                  the Senior Executive Service Schedule;
                    `(E) may request the head of any Federal agency to detail
                  any personnel of such agency to the Commission to assist
                  the Commission in carrying out the duties of the Commission
                  under this Act, unless otherwise prohibited by law;
                    `(F) shall use and expend Federal funds and funds
                  collected pursuant to section 17; and
                    `(G) may contract for the services of such other
                  professional, technical, and operational personnel and
                  consultants as may be necessary to the performance of the
                  Commission's responsibilities under this Act.
                `(2) Compensation of staff: The staff referred to in
              paragraph (1)(C) shall be paid without regard to the provisions
              of chapter 51 and subchapters III and VIII of chapter 53 of
              title 5, United States Code, relating to classification and
              General Schedule and Senior Executive Service Schedule pay
              rates, except that no individual so appointed may receive pay
              in excess of the annual rate of basic pay payable for ES-5 of
              the Senior Executive Service Schedule under section 5382 of
              title 5, United States Code.
            `(c) Applicable Policies: In carrying out any of the functions
          under this section, the Chairperson shall be governed by the
          general policies of the Commission and by such regulatory
          decisions, findings, and determinations as the Commission may by
          law be authorized to make.
          `SEC. 7. POWERS AND AUTHORITY OF THE COMMISSION.
            `(a) General Powers:
                `(1) In general: The Commission shall have the power to--
                    `(A) approve the annual budget of the Commission;
                    `(B) promulgate regulations to carry out this Act;
                    `(C) establish a rate of fees and assessments, as
                  provided in section 17;
                    `(D) conduct investigations, including background
                  investigations;
                    `(E) issue a temporary order closing the operation of
                  gaming activities;
                    `(F) after a hearing, make permanent a temporary order
                  closing the operation of gaming activities, as provided in
                  section 15;
                    `(G) grant, deny, limit, condition, restrict, revoke, or
                  suspend any license issued under any licensing authority
                  conferred upon the Commission pursuant to this Act or fine
                  any person licensed pursuant to this Act for violation of
                  any of the conditions of licensure under this Act;
                    `(H) inspect and examine all premises in which class II
                  or class III gaming is conducted on Indian lands;
                    `(I) demand access to and inspect, examine, photocopy,
                  and audit all papers, books, and records of class II and
                  class III gaming activities conducted on Indian lands and
                  any other matters necessary to carry out the duties of the
                  Commission under this Act;
                    `(J) use the United States mail in the same manner and
                  under the same conditions as any department or agency of
                  the United States;
                    `(K) procure supplies, services, and property by contract
                  in accordance with applicable Federal laws;
                    `(L) enter into contracts with Federal, State, tribal,
                  and private entities for activities necessary to the
                  discharge of the duties of the Commission;
                    `(M) serve or cause to be served process or notices of
                  the Commission in a manner provided for by the Commission
                  or in a manner provided for the service of process and
                  notice in civil actions in accordance with the applicable
                  rules of a tribal, State, or Federal court;
                    `(N) propound written interrogatories and appoint hearing
                  examiners, to whom may be delegated the power and authority
                  to administer oaths, issue subpoenas, propound written
                  interrogatories, and require testimony under oath;
                    `(O) conduct all administrative hearings pertaining to
                  civil violations of this Act (including any civil violation
                  of a regulation promulgated under this Act);
                    `(P) collect all fees and assessments authorized by this
                  Act and the regulations promulgated pursuant to this Act;
                    `(Q) assess penalties for violations of the provisions of
                  this Act and the regulations promulgated pursuant to this
                  Act;
                    `(R) provide training and technical assistance to Indian
                  tribes with respect to all aspects of the conduct and
                  regulation of gaming activities;
                    `(S) monitor and, as specifically authorized by this Act,
                  regulate class II and class III gaming;
                    `(T) approve all management-related and gaming-related
                  contracts; and
                    `(U) in addition to the authorities otherwise specified
                  in this Act, delegate, by published order or rule, any of
                  the functions of the Commission (including functions with
                  respect to hearing, determining, ordering, certifying,
                  reporting, or otherwise acting on the part of the
                  Commission concerning any work, business, or matter) to a
                  division of the Commission, an individual member of the
                  Commission, an administrative law judge, or an employee of
                  the Commission.
                `(2) Statutory construction: Nothing in this section may be
              construed to authorize the delegation of the function of
              rulemaking, as described in subchapter II of chapter 5 of title
              5, United States Code, with respect to general rules (as
              distinguished from rules of particular applicability), or the
              promulgation of any other rule.
            `(b) Right To Review Delegated Functions:
                `(1) In general: With respect to the delegation of any of the
              functions of the Commission, the Commission shall retain a
              discretionary right to review the action of any division of the
              Commission, individual member of the Commission, administrative
              law judge, or employee of the Commission, upon the initiative
              of the Commission.
                `(2) Vote needed for review: The vote of one member of the
              Commission shall be sufficient to bring an action referred to
              in paragraph (1) before the Commission for review, and the
              Commission shall ratify, revise, or reject the action under
              review not later than the last day of the applicable period
              specified in regulations promulgated by the Commission.
                `(3) Failure to conduct review: If the Commission declines to
              exercise the right to such review or fails to exercise such
              right within the applicable period specified in regulations
              promulgated by the Commission, the action of any such division
              of the Commission, individual member of the Commission,
              administrative law judge, or employee, shall, for all purposes,
              including any appeal or review of such action, be deemed an
              action of the Commission.
            `(c) Minimum Requirements: Pursuant to the procedures described
          in section 9(d), after receiving recommendations from the Advisory
          Committee, the Commission shall establish minimum Federal standards--
                `(1) for background investigations, licensing of persons, and
              licensing of gaming operations associated with the conduct or
              regulation of class II and class III gaming on Indian lands by
              tribal governments; and
                `(2) for the operation of class II and class III gaming
              activities on Indian lands, including--
                    `(A) surveillance and security personnel and systems
                  capable of monitoring all gaming activities, including the
                  conduct of games, cashiers' cages, change booths, count
                  rooms, movements of cash and chips, entrances and exits to
                  gaming facilities, and other critical areas of any gaming
                  facility;
                    `(B) procedures for the protection of the integrity of
                  the rules for the play of games and controls related to
                  such rules;
                    `(C) credit and debit collection controls;
                    `(D) controls over gambling devices and equipment; and
                    `(E) accounting and auditing.
            `(d) Commission Access to Information:
                `(1) In general: The Commission may secure from any
              department or agency of the United States information necessary
              to enable the Commission to carry out this Act. Unless
              otherwise prohibited by law, upon request of the Chairperson,
              the head of such department or agency shall furnish such
              information to the Commission.
                `(2) Information transfer: The Commission may secure from any
              law enforcement or gaming regulatory agency of any State,
              Indian tribe, or foreign nation information necessary to enable
              the Commission to carry out this Act. Unless otherwise
              prohibited by law, upon request of the Chairperson, the head of
              any State or tribal law enforcement agency shall furnish such
              information to the Commission.
                `(3) Privileged information: Notwithstanding sections 552 and
              552a of title 5, United States Code, the Commission shall
              protect from disclosure information provided by Federal, State,
              tribal, or international law enforcement or gaming regulatory
              agencies.
                `(4) Law enforcement agency: For purposes of this subsection,
              the Commission shall be considered a law enforcement agency.
            `(e) Investigations and Actions:
                `(1) In general:
                    `(A) Possible violations: The Commission may, at the
                  discretion of the Commission, and as specifically
                  authorized by this Act, conduct such investigations as the
                  Commission considers necessary to determine whether any
                  person has violated, is violating, or is conspiring to
                  violate any provision of this Act (including any rule or
                  regulation promulgated under this Act). The Commission may
                  require or permit any person to file with the Commission a
                  statement in writing, under oath, or otherwise as the
                  Commission may determine, concerning all of the relevant
                  facts and circumstances regarding the matter under
                  investigation by the Commission pursuant to this subsection.
                    `(B) Administrative investigations: The Commission is
                  authorized, at the discretion of the Commission, and as
                  specifically authorized by this Act, to investigate such
                  facts, conditions, practices, or matters as the Commission
                  considers necessary or proper to aid in--
                        `(i) the enforcement of any provision of this Act;
                        `(ii) prescribing rules and regulations under this
                      Act; or
                        `(iii) securing information to serve as a basis for
                      recommending further legislation concerning the matters
                      to which this Act relates.
                `(2) Administrative authorities:
                    `(A) In general: For the purpose of any investigation or
                  any other proceeding conducted under this Act, any member
                  of the Commission or any officer designated by the
                  Commission is empowered to administer oaths and
                  affirmations, subpoena witnesses, compel their attendance,
                  take evidence, and require the production of any books,
                  papers, correspondence, memoranda, or other records that
                  the Commission considers relevant or material to the
                  inquiry. The attendance of such witnesses and the
                  production of any such records may be required from any
                  place in the United States at any designated place of
                  hearing.
                    `(B) Requiring appearances or testimony: In case of
                  contumacy by, or refusal to obey any subpoena issued to,
                  any person, the Commission may invoke the jurisdiction of
                  any court of the United States within the jurisdiction of
                  which an investigation or proceeding is carried on, or
                  where such person resides or carries on business, in
                  requiring the attendance and testimony of witnesses and the
                  production of books, papers, correspondence, memoranda, and
                  other records.
                    `(C) Court orders: Any such court may issue an order
                  requiring such person to appear before the Commission or
                  member of the Commission or officer designated by the
                  Commission, there to produce records, if so ordered, or to
                  give testimony touching the matter under investigation or
                  in question, and any failure to obey such order of the
                  court may be punished by such court as a contempt of such
                  court.
                `(3) Enforcement:
                    `(A) In general: If the Commission determines that any
                  person is engaged, has engaged, or is conspiring to engage,
                  in any act or practice constituting a violation of any
                  provision of this Act (including any rule or regulation
                  promulgated under this Act), the Commission may--
                        `(i) bring an action in the appropriate district
                      court of the United States or the United States
                      District Court for the District of Columbia to enjoin
                      such act or practice, and upon a proper showing, the
                      court shall grant, without bond, a permanent or
                      temporary injunction or restraining order; or
                        `(ii) transmit such evidence as may be available
                      concerning such act or practice as may constitute a
                      violation of any Federal criminal law to the Attorney
                      General, who may institute the necessary criminal
                      proceedings.
                    `(B) Statutory construction: The authority of the
                  Commission to conduct investigations and take actions may
                  not be construed to affect in any way the authority of any
                  other agency or department of the United States to carry
                  out statutory responsibilities of such agency or department.
                `(4) Writs, injunctions, and orders: Upon application of the
              Commission, each district court of the United States shall have
              jurisdiction to issue writs of mandamus, injunctions, and
              orders commanding any person to comply with the provisions of
              this Act (including any rules and regulations promulgated under
              this Act).
          `SEC. 8. REGULATORY FRAMEWORK.
            `(a) Class II Gaming: For class II gaming, Indian tribes shall
          retain the right of such tribes to, in a manner that meets or
          exceeds minimum Federal standards established by the Commission
          pursuant to section 7(c)--
                `(1) monitor and regulate such gaming; and
                `(2) conduct background investigations and issue licenses to
              persons who are required to obtain a license under section 10(a).
            `(b) Class III Gaming Conducted Under a Tribal-State Compact: For
          class III gaming conducted under the authority of a tribal-State
          compact entered into pursuant to section 12, an Indian tribe or a
          State, or both, as provided in a compact or by tribal ordinance or
          resolution, shall, in a manner that meets or exceeds minimum
          Federal standards established by the Commission pursuant to section
          7(c)--
                `(1) monitor and regulate gaming;
                `(2) conduct background investigations and issue licenses to
              persons who are required to obtain a license pursuant to
              section 10(a); and
                `(3) establish and regulate internal control systems.
            `(c) Certain Other Compacts: For class III gaming conducted under
          the authority of a compact negotiated with the Secretary pursuant
          to section 12(a)(2), such compact shall provide that the Indian
          tribes or other appropriate entity shall, in a manner that meets or
          exceeds minimum Federal standards established by the Commission
          pursuant to section 7(c)--
                `(1) monitor and regulate such gaming;
                `(2) conduct background investigations and issue licenses to
              persons who are required to obtain a license pursuant to
              section 10(a); and
                `(3) establish and regulate internal control systems.
            `(d) Violations of Minimum Federal Standards:
                `(1) Class ii gaming: In any case in which an Indian tribe
              that conducts class II gaming substantially fails to meet
              minimum Federal standards for class II gaming, after providing
              the Indian tribe notice and opportunity to cure violations and
              to be heard, and after the exhaustion of other authorized
              remedies and sanctions, the Commission shall have the authority
              to conduct background investigations, issue licenses, and
              establish and regulate internal control systems. Such authority
              of the Commission may be exclusive until such time as the
              regulatory and internal control systems of the Indian tribe
              meet or exceed the minimum Federal standards concerning
              regulatory, licensing, or internal control requirements
              established by the Commission.
                `(2) Class iii gaming: In any case in which an Indian tribe
              or a State (or both) that regulates class III gaming fails to
              meet or exceed minimum Federal standards for class III gaming,
              after providing notice and opportunity to cure violations and
              be heard, and after the exhaustion of other authorized remedies
              and sanctions, the Commission shall have the authority to
              conduct background investigations,
          issue licenses, and establish and regulate internal control
          systems. Such authority of the Commission may be exclusive until
          such time as the regulatory or internal control systems of the
          Indian tribe or a State, or both, meet or exceed the minimum
          regulatory, licensing, or internal control requirements established
          by the Commission.
          `SEC. 9. ADVISORY COMMITTEE ON MINIMUM REGULATORY REQUIREMENTS AND
                            LICENSING STANDARDS.
            `(a) Establishment: The President shall establish an advisory
          committee to be known as the `Advisory Committee on Minimum
          Regulatory Requirements and Licensing Standards'.
            `(b) Members: The Advisory Committee shall be composed of 7
          members who shall be appointed by the President, of which--
                `(1) 3 members, selected from a list of recommendations
              submitted to the President by the Chairperson and Vice
              Chairperson of the Committee on Indian Affairs of the Senate
              and the Chairperson and ranking minority member of the
              Subcommittee on Native American and Insular Affairs of the
              Committee on Resources of the House of Representatives, shall
              be members of federally recognized Indian tribes involved in
              gaming covered under this Act;
                `(2) 2 members, selected from a list of recommendations
              submitted to the President by the Majority Leader and the
              Minority Leader of the Senate and the Speaker and the Minority
              Leader of the House of Representatives, shall represent State
              governments; and
                `(3) 2 members shall each be an employee of the Department of
              Justice.
            `(c) Recommendations for Minimum Federal Standards:
                `(1) In general: Not later than 180 days after the date on
              which the Advisory Committee is fully constituted, the Advisory
              Committee shall develop and submit to the entities referred to
              in paragraph (2) recommendations for minimum Federal standards
              for the conduct of background investigations and the
              establishment of internal control systems and licensing
              standards.
                `(2) Recipients of recommendations: The Advisory Committee
              shall submit the recommendations described in paragraph (1) to
              the Committee on Indian Affairs of the Senate, the Subcommittee
              on Native American and Insular Affairs of the Committee on
              Resources of the House of Representatives, the Commission, and
              to each federally recognized Indian tribe.
                `(3) Factors for consideration: While the minimum standards
              established pursuant to this section may be developed in light
              of existing industry standards, the Advisory Committee, and
              Commission in promulgating standards pursuant to subsection
              (d), shall give equal weight to--
                    `(A) the unique nature of tribal gaming as compared to
                  non-Indian commercial, governmental, and charitable gaming;
                    `(B) the broad variations in the scope and size of tribal
                  gaming activity;
                    `(C) the inherent sovereign right of Indian tribes to
                  regulate their own affairs; and
                    `(D) the findings and purposes set forth in sections 2
                  and 3.
            `(d) Regulations: Upon receipt of the recommendations of the
          Advisory Committee, the Commission shall hold public hearings on
          the recommendations. After the conclusion of the hearings, the
          Commission shall promulgate regulations establishing minimum
          regulatory requirements and licensing standards.
            `(e) Travel: Members of the Advisory Committee appointed under
          paragraphs (1) and (2) of subsection (b) shall be reimbursed for
          travel and per diem in lieu of subsistence expenses during the
          performance of duties of the Advisory Committee while away from
          home or their regular place of business, in accordance with
          subchapter I of chapter 57 of title 5, United States Code.
            `(f) Termination: The Advisory Committee shall cease to exist on
          the date that is 60 days after the date on which the Advisory
          Committee submits the recommendations under subsection (c).
            `(g) Exemption From Federal Advisory Committee Act: All
          activities of the Advisory Committee shall be exempt from the
          Federal Advisory Committee Act (5 U.S.C. App.).
          `SEC. 10. LICENSING.
            `(a) In General: A license issued under this Act shall be
          required of--
                `(1) gaming operations;
                `(2) key employees of a gaming operation;
                `(3) management- and gaming-related contractors;
                `(4) any gaming service industry; and
                `(5) any person who has material control, either directly or
              indirectly, over a licensed gaming operation.
            `(b) Certain Licenses for Management Contractors and Gaming
          Operations: Notwithstanding any other provision of law relating to
          licenses issued by an Indian tribe or a State (or both) pursuant to
          this Act, the Commission may require licenses of--
                `(1) management contractors; and
                `(2) gaming operations.
            `(c) Statement of Compliance:
                `(1) In general: The Commission may issue a statement of
              compliance to an applicant for any license or for qualification
              status under this Act at any time that the Commission is
              satisfied that one or more eligibility criteria for the license
              have been satisfied by an applicant.
                `(2) Contents of statement: A statement issued under
              subparagraph (A) shall specify the eligibility criterion
              satisfied, the date of such satisfaction, and a reservation by
              the Commission permitting the Commission to revoke the
              statement of compliance at any time on the basis of a change of
              circumstances affecting such compliance.
            `(d) Gaming Operation License:
                `(1) In general: No gaming operation shall operate unless all
              required licenses and approvals for the gaming operation have
              been obtained in accordance with this Act.
                `(2) Written agreements:
                    `(A) Filing: Prior to the operation of any gaming
                  facility or activity, each management contract for the
                  gaming operation shall be in writing and filed with the
                  Commission pursuant to section 13.
                    `(B) Express approval required: No such agreement shall
                  be effective unless the Commission expressly approves the
                  agreement.
                    `(C) Requirement of additional provisions: The Commission
                  may require that an agreement referred to in subparagraph
                  (A) includes any provisions that are reasonably necessary
                  to meet the requirements of this Act.
                    `(D) Ineligibility or exemption: Any applicant who does
                  not have the ability to exercise any significant control
                  over a licensed gaming operation may be determined by the
                  Commission to be ineligible to hold a license or may exempt
                  such applicant from being required to hold a license.
            `(e) Denial of License: The Commission, in the exercise of the
          specific licensure power conferred upon the Commission by this Act,
          shall deny a license to any applicant who is disqualified on the
          basis of a failure to meet any of the minimum Federal standards
          promulgated by the Commission pursuant to section 7(c).
            `(f) Application for License:
                `(1) In general: Upon the filing of the materials specified
              in paragraph (2), the Commission shall conduct an investigation
              into the qualifications of an applicant. The Commission may
              conduct a nonpublic hearing on such investigation concerning
              the qualifications of the applicant in accordance with
              regulations promulgated by the Commission.
                `(2) Filing of materials: The Commission shall carry out
              paragraph (1) upon the filing of--
                    `(A) an application for a license that the Commission is
                  specifically authorized to issue pursuant to this Act; and
                    `(B) such supplemental information as the Commission may
                  require.
                `(3) Timing of final action: After an application is
              submitted to the Commission, the Commission shall take final
              action not later than 90 days after--
                    `(A) completing all hearings and investigations
                  concerning the application; and
                    `(B) receiving all information required to be submitted
                  to the Commission.
                `(4) Deadline for hearings and investigations: Not later than
              90 days after receiving the information described in paragraph
              (3)(B), the Commission shall complete the hearings and
              investigations described in paragraph (3)(A).
                `(5) Action by commission: Following the completion of an
              investigation and hearing, the Commission shall either deny or
              grant a license to an applicant.
                `(6) Denials:
                    `(A) In general: The Commission may deny any application
                  pursuant to this Act.
                    `(B) Order of denial: If the Commission denies an
                  application submitted under this section, the Commission
                  shall prepare an order denying such application. In
                  addition, if an applicant requests a statement of the
                  reasons for the denial, the Commission shall prepare such
                  statement and provide the statement to the applicant. The
                  statement shall include specific findings of fact.
                `(7) Issuance of licenses: If the Commission is satisfied
              that an applicant is qualified to receive a license, the
              Commission shall issue a license to the applicant upon tender
              of--
                    `(A) all license fees and assessments as required by this
                  Act (including regulations promulgated by the Commission
                  under this Act); and
                    `(B) such bonds as the Commission may require for the
                  faithful performance of all requirements imposed by this
                  Act (including regulations promulgated under this Act).
                `(8) Bonds:
                    `(A) Amounts: The Commission shall, by rules of uniform
                  application, fix the amount of each bond that the
                  Commission requires under this section in such amount as
                  the Commission considers appropriate.
                    `(B) Use of bonds: The bonds furnished to the Commission
                  under this paragraph may be applied by the Commission to
                  the payment of any unpaid liability of the licensee under
                  this Act.
                    `(C) Terms: Each bond required in accordance with this
                  section shall be furnished--
                        `(i) in cash or negotiable securities;
                        `(ii) by a surety bond guaranteed by a satisfactory
                      guarantor; or
                        `(iii) by an irrevocable letter of credit issued by a
                      banking institution acceptable to the Commission.
                    `(D) Treatment of principal and income: If a bond is
                  furnished in cash or negotiable securities, the principal
                  shall be placed without restriction at the disposal of the
                  Commission, but any income shall inure to  the benefit of
                  the licensee.
            `(g) Renewal of License:
                `(1) In general:
                    `(A) Renewals: Subject to the power of the Commission to
                  deny, revoke, or suspend licenses, any license issued under
                  this section and in force shall be renewed by the
                  Commission for the next succeeding license period upon
                  proper application for renewal and payment of license fees
                  and assessments, as required by applicable law (including
                  regulations of the Commission).
                    `(B) Renewal term: Subject to subparagraph (C), the term
                  of a renewal period for a license issued under this section
                  shall be for a period of not more than--
                        `(i) 2 years, for each of the first 2 renewal periods
                      succeeding the initial issuance of a license pursuant
                      to subsection (f); and
                        `(ii) 3 years, for each succeeding renewal period.
                    `(C) Reopening hearings: The Commission may reopen
                  licensing hearings at any time after the Commission has
                  issued or renewed a license.
                `(2) Transition:
                    `(A) In general: Notwithstanding any other provision of
                  this subsection, the Commission shall, for the purpose of
                  facilitating the administration of this Act, renew a
                  license for an activity covered under subsection (a) that
                  is held by a person on the date of enactment of the Indian
                  Gaming Regulatory Act Amendments Act of 1995 for a renewal
                  period of 18 months.
                    `(B) Action before expiration: The Commission shall act
                  upon any license renewal application that is filed in a
                  timely manner prior to the date of expiration of the then
                  current license.
                `(3) Filing requirement: Each application for renewal shall
              be filed with the Commission not later than 90 days prior to
              the expiration of the then current license. All license fees
              and assessments that are required by law shall be paid to the
              Commission on or before the date of expiration of the then
              current license.
                `(4) Renewal certificate: Upon renewal of a license, the
              Commission shall issue an appropriate renewal certificate,
              validating device, or sticker, which shall be attached to the
              license.
            `(h) Hearings:
                `(1) In general: The Commission shall establish procedures
              for the conduct of hearings associated with licensing,
              including procedures for denying, limiting, conditioning,
              restricting, revoking, or suspending any such license.
                `(2) Action by commission: Following a hearing conducted for
              any of the purposes authorized in this section, the Commission
              shall--
                    `(A) render a decision of the Commission;
                    `(B) issue an order; and
                    `(C) serve such decision and order upon the affected
                  parties.
                `(3) Rehearing:
                    `(A) In general: The Commission may, upon a motion made
                  not later than 10 days after the service of a decision and
                  order, order a rehearing before the Commission on such
                  terms and conditions as the Commission considers just and
                  proper if the Commission finds cause to believe that the
                  decision and order should be reconsidered in view of the
                  legal, policy, or factual matters that are--
                        `(i) advanced by the party that makes the motion; or
                        `(ii) raised by the Commission on a motion made by
                      the Commission.
                    `(B) Action after rehearing: Following a rehearing
                  conducted by the Commission, the Commission shall--
                        `(i) render a decision of the Commission;
                        `(ii) issue an order; and
                        `(iii) serve such decision and order upon the
                      affected parties.
                    `(C) Final agency action: A decision and order made by
                  the Commission under paragraph (2) (if no motion for a
                  rehearing is made), or a decision and order made by the
                  Commission upon rehearing shall constitute final agency
                  action for purposes of judicial review.
                `(4) Jurisdiction: The United States Court of Appeals for the
              District of Columbia Circuit shall have jurisdiction to review
              the licensing decisions and orders of the Commission.
            `(i) License Registry: The Commission shall--
                `(1) maintain a registry of all licenses that are granted or
              denied pursuant to this Act; and
                `(2) make the information contained in the registry available
              to Indian tribes to assist the licensure and regulatory
              activities of Indian tribes.
          `SEC. 11. REQUIREMENTS FOR THE CONDUCT OF CLASS I AND CLASS II
                            GAMING ON INDIAN LANDS.
            `(a) Class I Gaming: Class I gaming on Indian lands shall be
          within the exclusive jurisdiction of the Indian tribes and shall
          not be subject to the provisions of this Act.
            `(b) Class II Gaming:
                `(1) In general: Any class II gaming on Indian lands shall be
              within the jurisdiction of the Indian tribes, but shall be
              subject to the provisions of this Act.
                `(2) Legal activities: An Indian tribe may engage in, and
              license and regulate, class II gaming on Indian lands within
              the jurisdiction of such tribe, if--
                    `(A) such Indian gaming is located within a State that
                  permits such gaming for any purpose by any person; and
                    `(B) the class II gaming operation meets or exceeds the
                  requirements of sections 7(c) and 10.
                `(3) Requirements for class ii gaming operations:
                    `(A) In general: The Commission shall ensure that  with
                  regard to any class II gaming operation on Indian lands--
                        `(i) a separate license is issued by the Indian tribe
                      for each place, facility, or location on Indian lands
                      at which class II gaming is conducted;
                        `(ii) the Indian tribe has or will have the sole
                      proprietary interest and responsibility for the conduct
                      of any class II gaming activity, unless the conditions
                      of clause (ix) apply;
                        `(iii) the net revenues from any class II gaming
                      activity may only be used--
            `(I) to fund tribal government operations or programs;
            `(II) to provide for the general welfare of the Indian tribe and
          the members of the Indian tribe;
            `(III) to promote tribal economic development;
            `(IV) to donate to charitable organizations;
            `(V) to help fund operations of local government agencies; or
            `(VI) to comply with the provisions of section 17;
                        `(iv) the Indian tribe shall provide to the
                      Commission annual outside audits of the class II gaming
                      operation of the Indian tribe, which may be encompassed
                      within existing independent tribal audit systems;
                        `(v) all contracts for supplies, services, or
                      concessions for a contract amount equal to more than
                      $50,000 per year, other than contracts for professional
                      legal or accounting services, relating to such gaming
                      shall be subject to such independent audits and any
                      audit conducted by the Commission;
                        `(vi) the construction and maintenance of a class II
                      gaming facility and the operation of class II gaming
                      shall be conducted in a manner that adequately protects
                      the environment and public health and safety;
                        `(vii) there shall be instituted an adequate system
                      that--
            `(I) ensures that--
            `(aa) background investigations are conducted on primary
          management officials, key employees, and persons having material
          control, either directly or indirectly, in a licensed class II
          gaming operation, and gaming-related contractors associated with a
          licensed class II gaming operation; and
            `(bb) oversight of such officials and the management by such
          officials is conducted on an ongoing basis; and
            `(II) includes--
            `(aa) tribal licenses for persons involved in class II gaming
          operations, issued in accordance with sections 7(c) and 10;
            `(bb) a standard whereby any person whose prior activities,
          criminal record, if any, or reputation, habits, and associations
          pose a threat to the public interest or to the effective regulation
          of gaming, or create or enhance the dangers of unsuitable, unfair,
          or illegal practices and methods and activities in the conduct of
          gaming shall not be eligible for employment or licensure; and
            `(cc) notification by the Indian tribe to the Commission of the
          results of such background investigation before the issuance of any
          such license;
                        `(viii) net revenues from any class II gaming
                      activities conducted or licensed by any Indian tribal
                      government may be used to make per capita payments to
                      members of the Indian tribe only if--
            `(I) the Indian tribe has prepared a plan to allocate revenues to
          uses authorized by clause (iii);
            `(II) the Secretary determines that the plan is adequate,
          particularly with respect to uses described in subclause (I) or
          (III) of clause (iii);
            `(III) the interests of minors and other legally incompetent
          persons who are entitled to receive any of the per capita payments
          are protected and preserved;
            `(IV) the per capita payments to minors and other legally
          incompetent persons are disbursed to the parents or legal guardians
          of such minors or legally incompetent persons in such amounts as
          may be necessary for the health, education, or welfare of each such
          minor or legally incompetent person under a plan approved by the
          Secretary and the governing body of the Indian tribe; and
            `(V) the per capita payments are subject to Federal income
          taxation and Indian tribes withhold such taxes when such payments
          are made;
                        `(ix) a separate license shall be issued by the
                      Indian tribe for any class II gaming operation owned by
                      any person or entity other than the Indian tribe and
                      conducted on Indian lands, that includes--
            `(I) requirements set forth in subparagraph (C); and
            `(II) requirements that are at least as restrictive as those
          established by State law governing similar gaming within the
          jurisdiction of the State within which such Indian lands are
          located; and
                        `(x) no person or entity, other than the Indian
                      tribe, shall be eligible to receive a tribal license to
                      own a class II gaming operation conducted on Indian
                      lands within the jurisdiction of the Indian tribe if
                      such person or entity would not be eligible to receive
                      a State license to conduct the same activity within the
                      jurisdiction of the State.
                    `(B) Transition:
                        `(i) In general: Clauses (ii), (iii), and (ix) shall
                      not bar the continued operation of an individually
                      owned class II gaming operation that was operating on
                      September 1, 1986, if--
            `(I) such gaming operation is licensed and regulated by an Indian
          tribe;
            `(II) income to the Indian tribe from such gaming is used only
          for the purposes described in subparagraph (A)(iii);
            `(III) not less than 60 percent of the net revenues from such
          gaming operation is income to the licensing Indian tribe; and
            `(IV) the owner of such gaming operation pays an appropriate
          assessment to the Commission pursuant to
          section 17 for the regulation of such gaming.
                        `(ii) Limitations on exemption: The exemption from
                      application provided under clause (i) may not be
                      transferred to any person or entity and shall remain in
                      effect only during such period as the gaming operation
                      remains within the same nature and scope as such gaming
                      operation was actually operated on October 17, 1988.
                    `(C) List: The Commission shall--
                        `(i) maintain a list of each individually owned
                      gaming operation that is subject to subparagraph
                      (A)(x); and
                        `(ii) publish such list in the Federal Register.
            `(c) Petition for Certificate of Self-Regulation:
                `(1) In general: Any Indian tribe that operates, directly or
              with a management contract, a class II gaming activity may
              petition the Commission for a certificate of self-regulation if
              that Indian tribe--
                    `(A) has continuously conducted such activity for a
                  period of not less than 3 years, including a period of at
                  least 1 year after the date of the enactment of the Indian
                  Gaming Regulatory Act Amendments Act of 1995; and
                    `(B) has otherwise complied with the provisions of this
                  Act.
                `(2) Issuance of certificate of self-regulation: The
              Commission shall issue a certificate of self-regulation if the
              Commission determines on the basis of available information,
              and after a hearing if requested by the tribe, that the Indian
              tribe has--
                    `(A) conducted its gaming activity in a manner which has--
                        `(i) resulted in an effective and honest accounting
                      of all revenues;
                        `(ii) resulted in a reputation for safe, fair, and
                      honest operation of the activity; and
                        `(iii) been generally free of evidence of criminal or
                      dishonest activity;
                    `(B) adopted and implemented adequate systems for--
                        `(i) accounting for all revenues from the activity;
                        `(ii) investigation, licensing, and monitoring of all
                      employees of the gaming activity; and
                        `(iii) investigation, enforcement, and prosecution of
                      violations of its gaming ordinance and regulations;
                    `(C) conducted the operation on a fiscally and
                  economically sound basis; and
                    `(D) paid all fees and assessments that the tribe is
                  required to pay to the Commission under this Act.
                `(3) Effect of certificate of self-regulation: During the
              period in which a certificate of self-regulation issued under
              this paragraph is in effect with respect to a gaming activity
              conducted by an Indian tribe--
                    `(A) the tribe shall--
                        `(i) continue to submit an annual independent audit
                      as required by subsection (b)(3)(A)(iv); and
                        `(ii) submit to the Commission a complete resume of
                      each employee hired and licensed by the tribe
                      subsequent to the issuance of a certificate of
                      self-regulation; and
                    `(B) the Commission may not assess a fee on such activity
                  pursuant to section 17 in excess of  1/4  of 1 percent of
                  the gross revenue from such activity.
                `(4) Rescission: The Commission may, for just cause and after
              an opportunity for a hearing, rescind a certificate of
              self-regulation by majority vote of the members of the
              Commission.
            `(d) License Revocation: If, after the issuance of any license by
          an Indian tribe under this section, the Indian tribe receives
          reliable information from the Commission indicating that a licensee
          does not meet any standard established under section 7(c) or 10, or
          any other applicable regulation promulgated by the Commission, the
          Indian tribe--
                `(1) shall suspend such license; and
                `(2) after notice and hearing under procedures established
              pursuant to applicable tribal law, may revoke such license.
          `SEC. 12. CLASS III GAMING ON INDIAN LANDS.
            `(a) Requirements for the Conduct of Class III Gaming on Indian
          Lands:
                `(1) In general: Class III gaming activities shall be lawful
              on Indian lands only if such activities are--
                    `(A) authorized by a compact that--
                        `(i) is approved pursuant to tribal law by the
                      governing body of the Indian tribe having jurisdiction
                      over such lands;
                        `(ii) meets the requirements of section 11(b)(3) for
                      the conduct of class II gaming; and
                        `(iii) is approved by the Secretary;
                    `(B) located in a State that permits such gaming for any
                  purpose by any person; and
                    `(C) conducted in conformance with a tribal-State compact
                  that--
                        `(i) is in effect; and
                        `(ii) is--
            `(I) entered into by an Indian tribe and a State and approved by
          the Secretary under paragraph (2); or
            `(II) issued by the Secretary under paragraph (2).
                `(2) Compact negotiations:
                    `(A) In general:
                        `(i) Compact negotiations: Any Indian tribe having
                      jurisdiction over the lands upon which a class III
                      gaming activity is to be conducted may request the
                      State in which such lands are located to enter into
                      negotiations for the purpose of entering into a
                      tribal-State compact governing the conduct of class III
                      gaming activities.
                        `(ii) Requirements for request for negotiations: A
                      request for negotiations under clause (i) shall be in
                      writing and shall specify each gaming activity that the
                      Indian tribe proposes for inclusion in the compact. Not
                      later than 30 days after receipt of such written
                      request, the State shall respond to the Indian tribe.
                        `(iii) Commencement of compact negotiations: Compact
                      negotiations conducted under this paragraph shall
                      commence not later than 30 days after the date on which
                      a response by a State is due to the Indian tribe, and
                      shall be completed not later than 120 days after the
                      initiation of compact negotiations, unless the State
                      and the Indian tribe agree to a different period of
                      time for the completion of compact negotiations.
                        `(iv) Inability to meet deadlines for negotiations:
            `(I) Notification: If the State and the Indian tribe find that
          the State and Indian tribe are unable to commence or complete
          compact negotiations within the applicable time periods provided in
          this subsection, the Indian tribe shall notify the Secretary.
            `(II) Presentation of positions: Upon receipt of a notice under
          subclause (I), the Secretary shall request that the tribe and the
          State present their respective positions, not later than 60 days
          after such request, regarding--
            `(aa) the gaming activities that the tribe seeks to conduct that
          are permissible under this Act;
            `(bb) the framework for regulation of tribal gaming; and
            `(cc) such other matters as the Secretary may consider appropriate.
                    `(B) Approval of compact: Not later than 90 days after
                  the date of expiration of the 60-day period specified in
                  subparagraph (A), the Secretary shall approve a compact
                  that meets the requirements of this section, and shall
                  publish the compact in the Federal Register. The compact
                  shall--
                        `(i) include provisions--
            `(I) that best meet the objectives of this Act; and
            `(II) for background investigations, internal controls, and
          licensing that are consistent with this Act (including regulations
          promulgated by the Commission pursuant to section 7(c)); and
                        `(ii) not violate--
            `(I) any provision of this Act (including regulations promulgated
          by the Commission pursuant to this Act);
            `(II) any other provision of Federal law; or
            `(III) the trust obligation of the United States to Indians.
                    `(C) Mandatory disapproval: Notwithstanding any other
                  provision of this Act, the Secretary shall not have the
                  authority to approve a compact if the compact requires
                  State regulation of Indian gaming absent the consent of the
                  State or the Indian tribe.
                    `(D) Effect of publication of compact: Except for an
                  appeal conducted under subchapter II of chapter 5 of title
                  5, United States Code, by an Indian tribe or a State
                  associated with the publication of the compact, the
                  publication of a compact pursuant to subparagraph (B) that
                  permits a form of class III gaming shall, for the purposes
                  of this Act, be conclusive evidence that such class III
                  gaming is an activity subject to negotiations under the
                  laws of the State where the gaming is to be conducted, in
                  any matter under consideration by the Commission or a
                  Federal court.
                    `(E) Effective date of compact: Any compact negotiated
                  under this subsection shall become effective upon the
                  publication of the compact in the Federal Register by the
                  Secretary.
                    `(F) Duties of commission: Consistent with the provisions
                  of sections 7(c), 8, and 10, the Commission shall monitor
                  and, if specifically authorized, regulate and license class
                  III gaming with respect to any compact that is approved by
                  the Secretary under this subsection and published in the
                  Federal Register.
                `(3) Provisions of compacts:
                    `(A) In general: A compact negotiated under this
                  subsection may include provisions relating to--
                        `(i) the application of the criminal and civil laws
                      (including regulations) of the Indian tribe or the
                      State that are directly related to, and necessary for,
                      the licensing and regulation of such activity in a
                      manner consistent with sections 7(c), 8, and 10;
                        `(ii) the allocation of criminal and civil
                      jurisdiction between the State and the Indian tribe
                      necessary for the enforcement of such laws (including
                      regulations);
                        `(iii) the assessment by the State of the costs
                      associated with such activities in such amounts as are
                      necessary to defray the costs of regulating such
                      activity;
                        `(iv) taxation by the Indian tribe of such activity
                      in amounts comparable to amounts assessed by the State
                      for comparable activities;
                        `(v) remedies for breach of compact provisions;
                        `(vi) standards for the operation of such activity
                      and maintenance of the gaming facility, including
                      licensing, in a manner consistent with sections 7(c),
                      8, and 10; and
                        `(vii) any other subject that is directly related to
                      the operation of gaming activities and the impact of
                      gaming on tribal, State, and local governments.
                    `(B) Statutory construction with respect to assessments:
                  Except for any assessments for services agreed to by an
                  Indian tribe in compact negotiations, nothing in this
                  section may be construed as conferring upon a State or any
                  political subdivision thereof the authority to impose any
                  tax, fee, charge, or other assessment upon an Indian tribe,
                  an Indian gaming operation or the value generated by the
                  gaming operation, or any person or entity authorized by an
                  Indian tribe to engage in a class III gaming activity in
                  conformance with this Act.
                `(4) Statutory construction with respect to certain rights of
              indian tribes: Nothing in this subsection impairs the right of
              an Indian tribe to regulate class III gaming on the Indian
              lands of the Indian tribe concurrently with a State and the
              Commission, except to the extent that such regulation is
              inconsistent with, or less stringent than, this Act or any laws
              (including regulations) made applicable by any compact entered
              into by the Indian tribe under this subsection that is in effect.
                `(5) Exemption: The provisions of section 2 of the Act of
              January 2, 1951 (commonly referred to as the `Gambling Devices
              Transportation Act') (64 Stat. 1134, chapter 1194, 15 U.S.C.
              1175) shall not apply to any class II gaming activity or any
              gaming activity conducted pursuant to a compact entered into
              after the date of enactment of this Act, but in no event shall
              this paragraph be construed as invalidating any exemption from
              the provisions of such section 2 for any compact entered into
              prior to the date of enactment of this Act.
            `(b) Jurisdiction of United States District Court for the
          District of Columbia: The United States District Court for the
          District of Columbia shall have jurisdiction over any action
          initiated by the Secretary, the Commission, a State, or an Indian
          tribe to enforce any provision of a compact entered into under
          subsection (a) or to enjoin a class III gaming activity located on
          Indian lands and conducted in violation of any compact that is in
          effect and that was entered into under subsection (a).
            `(c) Approval of Compacts:
                `(1) In general: The Secretary is authorized to approve any
              compact between an Indian tribe and a State governing the
              conduct of class III gaming on Indian lands of such Indian
              tribe entered into under subsection (a).
                `(2) Reasons for disapproval by secretary: The Secretary may
              disapprove a compact entered into under subsection (a) only if
              such compact violates any--
                    `(A) provision of this Act or any regulation promulgated
                  by the Commission pursuant to this Act;
                    `(B) other provision of Federal law; or
                    `(C) trust obligation of the United States to Indians.
                `(3) Effect of failure to act on compact: If the Secretary
              fails to approve or disapprove a compact entered into under
              subsection (a) before the date that is 45 days after the date
              on which the compact is submitted to the Secretary for
              approval, the compact shall be considered to have been approved
              by the Secretary, but only to the extent the compact is
              consistent with the provisions of this Act and the regulations
              promulgated by the Commission pursuant to this Act.
                `(4) Notification: The Secretary shall publish in the Federal
              Register notice of any compact that is approved, or considered
              to have been approved, under this subsection.
            `(d) Revocation of Ordinance:
                `(1) In general: The governing body of an Indian tribe, in
              its sole discretion, may adopt an ordinance or resolution
              revoking any prior ordinance or resolution that authorized
              class III gaming on the Indian lands of the Indian tribe. Such
              revocation shall render class III gaming illegal on the Indian
              lands of such Indian tribe.
                `(2) Publication of revocation: An Indian tribe shall submit
              any revocation ordinance or resolution described in paragraph
              (1) to the Commission. The Commission shall publish such
              ordinance or resolution in the Federal Register. The revocation
              provided by such ordinance or resolution shall take effect on
              the date of such publication.
                `(3) Conditional operation: Notwithstanding any other
              provision of this subsection--
                    `(A) any person or entity operating a class III gaming
                  activity pursuant to this paragraph on the date on which an
                  ordinance or resolution described in paragraph (1) that
                  revokes authorization for such class III gaming activity is
                  published in the Federal Register may, during the 1-year
                  period beginning on the date on which such revocation,
                  ordinance, or resolution is published under paragraph (2),
                  continue to operate such activity in conformance with an
                  applicable compact entered into under subsection (a) that
                  is in effect; and
                    `(B) any civil action that arises before, and any crime
                  that is committed before, the termination of such 1-year
                  period shall not be affected by such revocation ordinance,
                  or resolution.
            `(e) Certain Class III Gaming Activities:
                `(1) Compacts entered into before the date of enactment of
              the indian gaming regulatory act amendments act of 1995: Class
              III gaming activities that are authorized under a compact
              approved or issued by the Secretary under the authority of this
              Act prior to the date of enactment of the Indian Gaming
              Regulatory Act Amendments Act of 1995 shall, during such period
              as the compact is in effect, remain lawful for the purposes of
              this Act, notwithstanding the Indian Gaming Regulatory Act
              Amendments Act of 1995 and the amendments made by such Act or
              any change in State law enacted after the approval or issuance
              of the compact.
                `(2) Compact entered into after the date of enactment of the
              indian gaming regulatory act amendments act of 1995: Any
              compact entered into under subsection (a) after the date
              specified in paragraph (1) shall remain lawful for the purposes
              of this Act, notwithstanding any change in State law enacted
              after the approval or issuance of the compact.
          `SEC. 13. REVIEW OF CONTRACTS.
            `(a) Contracts Included: The Commission shall review and approve
          or disapprove--
                `(1) any management contract for the operation and management
              of any gaming activity that an Indian tribe may engage in under
              this Act; and
                `(2) unless licensed by an Indian tribe consistent with the
              minimum Federal standards adopted pursuant to section 7(c), any
              gaming-related contract.
            `(b) Management Contract Requirements: The Commission shall
          approve any management contract between an Indian tribe and a
          person licensed by an Indian tribe or the Commission that is
          entered into pursuant to this Act only if the Commission determines
          that the contract provides for--
                `(1) adequate accounting procedures that are maintained, and
              verifiable financial reports that are prepared by or for, the
              governing body of the Indian tribe on a monthly basis;
                `(2) access to the daily gaming operations by appropriate
              officials of the Indian tribe who shall have the right to
              verify the daily gross revenues and income derived from any
              gaming activity;
                `(3) a minimum guaranteed payment to the Indian tribe that
              has preference over the retirement of any development and
              construction costs;
                `(4) an agreed upon ceiling for the repayment of any
              development and construction costs;
                `(5) a contract term of not to exceed 5 years, except that,
              upon the request of an Indian tribe, the Commission may
              authorize a contract term that exceeds 5 years but does not
              exceed 7 years, if the Commission is satisfied that the capital
              investment required, and the income projections for the
              particular gaming activity, require the additional time; and
                `(6) grounds and mechanisms for the termination of the
              contract, but any such termination shall not require the
              approval of the Commission.
            `(c) Management Fee Based on Percentage of Net Revenues:
                `(1) Percentage fee: The Commission may approve a management
              contract that provides for a fee that is based on a percentage
              of the net revenues of a tribal gaming activity if the
              Commission determines that such percentage fee is reasonable,
              taking into consideration surrounding circumstances.
                `(2) Fee amount: Except as provided in paragraph (3), a fee
              described in paragraph (1) shall not exceed an amount equal to
              30 percent of the net revenues described in such paragraph.
                `(3) Exception: Upon the request of an Indian tribe, if the
              Commission is satisfied that the capital investment required,
              and income projections for, a tribal gaming activity,
              necessitate a fee in excess of the amount specified in
              paragraph (2), the Commission may approve a management contract
              that provides for a fee described in paragraph (1) in an amount
              in excess of the amount specified in paragraph (2), but not to
              exceed 40 percent of the net revenues described in paragraph (1).
            `(d) Gaming-Related Contract Requirements: The Commission shall
          approve a gaming-related contract covered under subsection (a)(2)
          that is entered into pursuant to this Act only if the Commission
          determines that the contract provides for--
                `(1) grounds and mechanisms for termination of the contract,
              but such termination shall not require the approval of the
              Commission; and
                `(2) such other provisions as the Commission may be empowered
              to impose by this Act.
            `(e) Time Period for Review:
                `(1) In general: Except as provided in paragraph (2), not
              later than 90 days after the date on which a management
              contract or other gaming-related contract is submitted to the
              Commission for approval, the Commission shall approve or
              disapprove such contract on the merits of the contract. The
              Commission may extend the 90-day period for an additional
              period of not more than 45 days if the Commission notifies the
              Indian tribe in writing of the reason for the extension of the
              period. The Indian tribe may bring an action in the United
              States District Court for the District of Columbia to compel
              action by the Commission if a contract has not been approved or
              disapproved by the termination date of an applicable period
              under this subsection.
                `(2) Effect of failure of commission to act on certain
              gaming-related contract: Any gaming-related contract for an
              amount less than or equal to $100,000 that is submitted to the
              Commission pursuant to paragraph (1) by a person who holds a
              valid license that is in effect under this Act shall be deemed
              to be approved, if by the date that is 90 days after the
              contract is submitted to the Commission, the Commission fails
              to approve or disapprove the contract.
            `(f) Contract Modifications and Void Contracts: The Commission,
          after providing notice and hearing--
                `(1) shall have the authority to require appropriate contract
              modifications to ensure compliance with the provisions of this
              Act; or
                `(2) may void any contract regulated by the Commission under
              this Act if the Commission determines that any of the
              provisions of this Act have been violated by the terms of the
              contract.
            `(g) Interests in Real Property: No contract regulated by this
          Act may transfer or, in any other manner, convey any interest in
          land or other real property, unless specific statutory authority
          exists, all necessary approvals for such transfer or conveyance
          have been obtained, and such transfer or conveyance is clearly
          specified in the contract.
            `(h) Authority of the Secretary: The authority of the Secretary
          under section 2103 of the Revised Statutes (25 U.S.C. 81) shall not
          extend to any contract or agreement that is regulated pursuant to
          this Act.
            `(i) Disapproval of Contracts: The Commission may not approve a
          contract if the Commission determines that--
                `(1) any person having a direct financial interest in, or
              management responsibility for, such contract, and, in the case
              of a corporation, any individual who serves on the board of
              directors of such corporation, and any of the stockholders who
              hold (directly or indirectly) 10 percent or more of its issued
              and outstanding stock--
                    `(A) is an elected member of the governing body of the
                  Indian tribe which is a party to the contract;
                    `(B) has been convicted of any felony or gaming offense;
                    `(C) has knowingly and willfully provided materially
                  important false statements or information to the Commission
                  or the Indian tribe pursuant to this Act or has refused to
                  respond to questions propounded by the Commission; or
                    `(D) has been determined to be a person whose prior
                  activities, criminal record, if any, or reputation, habits,
                  and associations pose a threat to the public interest or to
                  the effective regulation and control of gaming, or create
                  or enhance the dangers of unsuitable, unfair, or illegal
                  practices, methods, and activities in the conduct of gaming
                  or the carrying on of the business and financial
                  arrangements incidental thereto;
                `(2) the contractor--
                    `(A) has unduly interfered or influenced for its gain or
                  advantage any decision or process of tribal government
                  relating to the gaming activity; or
                    `(B) has attempted to interfere or influence a decision
                  pursuant to subparagraph (A);
                `(3) the contractor has deliberately or substantially failed
              to comply with the terms of the contract; or
                `(4) a trustee, exercising the skill and diligence that a
              trustee is commonly held to, would not approve the contract.
          `SEC. 14. REVIEW OF EXISTING CONTRACTS; INTERIM AUTHORITY.
            `(a) Review of Existing Contracts:
                `(1) In general: At any time after the Commission is sworn in
              and has promulgated regulations for the implementation of this
              Act, the Commission shall notify each Indian tribe and
              management contractor who, prior to the enactment of the Indian
              Gaming Regulatory Act Amendments Act of 1995, entered into a
              management contract that was approved by the Secretary, that
              the Indian tribe is required to submit to the Commission such
              contract, including all collateral agreements relating to the
              gaming activity, for review by the Commission not later than 60
              days after such notification. Any such contract shall be valid
              under this Act, unless the contract is disapproved by the
              Commission under this section.
                `(2) Review:
                    `(A) In general: Not later than 180 days after the
                  submission of a management contract, including all
                  collateral agreements, to the Commission pursuant to this
                  section, the Commission shall review the contract to
                  determine whether the contract meets the requirements of
                  section 13 and was entered into in accordance with the
                  procedures under such section.
                    `(B) Approval of contract: The Commission shall approve a
                  management contract submitted for review under subsection
                  (a) if the Commission determines that--
                        `(i) the management contract meets the requirements
                      of section 13; and
                        `(ii) the management contractor has obtained all of
                      the licenses that the contractor is required to obtain
                      under this Act.
                    `(C) Notification of necessary modifications: If the
                  Commission determines that a contract submitted under this
                  section does not meet the requirements of section 13, the
                  Commission shall provide written notification to the
                  parties to such contract of the necessary modifications and
                  the parties shall have 180 days to make the modifications.
            `(b) Interim Authority of the National Indian Gaming Commission:
                `(1) In general: Notwithstanding any other provision of this
              Act, the Chairperson and the associate members of the National
              Indian Gaming Commission who are holding office on the date of
              enactment of this Act shall exercise those authorities vested
              in the Federal Indian Gaming Regulatory Commission by this Act
              until such time as the members of the Federal Indian Gaming
              Regulatory Commission are sworn into office.
                `(2) Transition: Notwithstanding any other provision of law,
              the  Commission shall exercise the authority conferred on the
              Commission by this Act, and until such time as the Commission
              promulgates revised regulations after the date of enactment of
              the Indian Gaming Regulatory Act Amendments Act of 1995, the
              regulations issued under this Act, as in effect on the day
              before such date of enactment, shall apply.
          `SEC. 15. CIVIL PENALTIES.
            `(a) Amount: Any person who commits any act or causes to be done
          any act that violates any provision of this Act or the rules or
          regulations promulgated under this Act, or who fails to carry out
          any act or causes the failure to carry out any act that is required
          by any such provision of law shall be subject to a civil penalty in
          an amount equal to not more than $50,000 per day for each such
          violation.
            `(b) Assessment and Collection:
                `(1) In general: Each civil penalty assessed under this
              section shall be assessed by the Commission and collected in a
              civil action brought by the Attorney General on behalf of the
              United States. Before the Commission refers civil penalty
              claims to the Attorney General, the Commission may compromise
              the civil penalty after affording the person charged with a
              violation referred to in subsection (a), an opportunity to
              present views and evidence in support of such action by the
              Commission to establish that the alleged violation did not occur.
                `(2) Penalty amount: In determining the amount of a civil
              penalty assessed under this section, the Commission shall take
              into account--
                    `(A) the nature, circumstances, extent, and gravity of
                  the violation committed;
                    `(B) with respect to the person found to have committed
                  such violation, the degree of culpability, any history of
                  prior violations, ability to pay, the effect on ability to
                  continue to do business; and
                    `(C) such other matters as justice may require.
            `(c) Temporary Closures:
                `(1) In general: The Commission may order the temporary
              closure of all or part of an Indian gaming operation for a
              substantial violation of any provision of law referred to in
              subsection (a).
                `(2) Hearing on order of temporary closure:
                    `(A) In general: Not later than 30 days after the
                  issuance of an order of temporary closure, the Indian tribe
                  or the individual owner of a gaming operation shall have
                  the right to request a hearing before the Commission to
                  determine whether such order should be made permanent or
                  dissolved.
                    `(B) Deadlines relating to hearing: Not later than 30
                  days after a request for a hearing is made, the Commission
                  shall conduct such hearing. Not later than 30 days after
                  the termination of the hearing, the Commission shall render
                  a final decision on the closure.
          `SEC. 16. JUDICIAL REVIEW.
            `A decision made by the Commission pursuant to sections 7, 8, 10,
          13, 14, and 15 shall constitute final agency decisions for purposes
          of appeal to the United States District Court for the District of
          Columbia pursuant to chapter 7 of title 5, United States Code.
          `SEC. 17. COMMISSION FUNDING.
            `(a) Annual Fees:
                `(1) In general: The Commission shall establish a schedule of
              fees to be paid to the Commission annually by gaming operations
              for each class II and class III gaming activity that is
              regulated by this Act.
                `(2) Limitation on fee rates:
                    `(A) In general: For each gaming operation regulated
                  under this Act, the rate of the fees imposed under the
                  schedule established under paragraph (1) shall not exceed 2
                  percent of the net revenues of such gaming operation.
                    `(B) Total amount of fees: The total amount of all fees
                  imposed during any fiscal year under the schedule
                  established under paragraph (1) shall equal not more than
                  $25,000,000.
                `(3) Annual fee rate: The Commission, by a vote of a majority
              of the members of the Commission, shall annually adopt the rate
              of the fees authorized by this section. Such fees shall be
              payable to the Commission on a monthly basis.
                `(4) Adjustment of fees: The fees paid by a gaming operation
              may be adjusted by the Commission to reduce the amount of the
              fees by an amount that takes into account that regulatory
              functions are performed by an Indian tribe, or the Indian tribe
              and a State, pursuant to regulations promulgated by the
              Commission.
                `(5) Consequences of failure to pay fees: Failure to pay the
              fees imposed under the schedule established under paragraph (1)
              shall, subject to regulations promulgated by the Commission, be
              grounds for revocation of the approval of the Commission of any
              license required under this Act for the operation of gaming
              activities.
                `(6) Surplus funds: To the extent that revenue derived from
              fees imposed under the schedule established under paragraph (1)
              exceed the limitation in paragraph (2)(B) or are not expended
              or committed at the close of any fiscal year, such surplus
              funds shall be credited to each gaming activity that is the
              subject of the fees on a pro rata basis against such fees
              imposed for the succeeding year.
            `(b) Reimbursement of Costs: The Commission is authorized to
          assess any applicant, except the governing body of an Indian tribe,
          for any license required pursuant to this Act. Such assessment
          shall be an amount equal to the actual costs of conducting all
          reviews and investigations necessary for the Commission to
          determine whether a license should be granted or denied to the
          applicant.
            `(c) Annual Budget:
                `(1) In general: For the first full fiscal year beginning
              after the date of enactment of the Indian Gaming Regulatory Act
              Amendments Act of 1995, and each fiscal year thereafter, the
              Commission shall adopt an annual budget for the expenses and
              operation of the Commission.
                `(2) Request for appropriations: The budget of the Commission
              may include a request for appropriations authorized under
              section 18.
                `(3) Submission to congress: Notwithstanding any other
              provision of law, a request for appropriations made pursuant to
              paragraph (2) shall be submitted by the Commission directly to
              the Congress beginning with the request for the first full
              fiscal year beginning after the date of enactment of this Act,
              and shall include the proposed annual budget of the Commission
              and the estimated revenues to be derived from fees.
          `SEC. 18. AUTHORIZATION OF APPROPRIATIONS.
            `Subject to section 17, there are authorized to be appropriated
          $5,000,000 to provide for the operation of the Commission for each
          of fiscal years 1997, 1998, and 1999, to remain available until
          expended.
          `SEC. 19. MISCELLANEOUS.
            `(a) Gaming Proscribed on Lands Acquired in Trust:
                `(1) In general: Except as provided in paragraph (2), gaming
              regulated by this Act shall not be conducted on lands acquired
              by the Secretary in trust for the benefit of an Indian tribe
              after the date of enactment of this Act, unless--
                    `(A) such lands are located within or contiguous to the
                  boundaries of the reservation of the Indian tribe on the
                  date of enactment of this Act;
                    `(B) the Indian tribe has no reservation on the date of
                  enactment of this Act and such lands are located in the
                  State of Oklahoma and--
                        `(i) are within the boundaries of the former
                      reservation of the Indian tribe, as defined by the
                      Secretary; or
                        `(ii) are contiguous to other land held in trust or
                      restricted status by the United States for the Indian
                      tribe in the State of Oklahoma; or
                    `(C) such lands are located in a State other than the
                  State of Oklahoma and are within the last recognized
                  reservation of the Indian tribe within the State within
                  which the Indian tribe is presently located.
                `(2) Exemption for certain trust lands: Paragraph (1) does
              not apply in any case in which--
                    `(A) the Secretary, after consultation with the Indian
                  tribe and a review of the recommendations, if any, of the
                  Governor of the State in which such lands are located, and
                  any other State and local officials, including officials of
                  other nearby Indian tribes, determines that a gaming
                  establishment on newly acquired lands--
                        `(i) would be in the best interest of the Indian
                      tribe and the members of the Indian tribe; and
                        `(ii) would not be detrimental to the surrounding
                      community;
                    `(B) lands are taken into trust as part of a settlement
                  of a land claim;
                    `(C) the initial reservation of an Indian tribe is
                  acknowledged by the Secretary under the Federal
                  acknowledgment process or by an Act of Congress; or
                    `(D) lands are restored for an Indian tribe that is
                  restored to Federal recognition.
                `(3) Exemption: Paragraph (1) shall not apply to--
                    `(A) any lands involved in the trust petition of the St.
                  Croix Chippewa Indians of Wisconsin that is the subject of
                  the action filed in the United States District Court for
                  the District of Columbia entitled St. Croix Chippewa
                  Indians of Wisconsin v. United States, Civ. No. 86-2278; or
                    `(B) the interests of the Miccosukee Tribe of Indians of
                  Florida in approximately 25 contiguous acres of land, more
                  or less, in Dade County, Florida, located within 1 mile of
                  the intersection of State road numbered 27 (also known as
                  Krome Avenue) and the Tamiami Trail.
                `(4) Authority of the secretary: Nothing in this section may
              affect or diminish the authority and responsibility of the
              Secretary to take land into trust.
            `(b) Application of the Internal Revenue Code of 1986:
                `(1) In general: The provisions of the Internal Revenue Code
              of 1986 (including sections 1441, 3402(q), 6041, and chapter 35
              of such Code) concerning the reporting and withholding of taxes
              with respect to the winnings from gaming or wagering operations
              shall apply to Indian gaming operations conducted pursuant to
              this Act, or under a compact entered into under section 12 that
              is in effect, in the same manner as such provisions apply to
              State gaming and wagering operations. Any exemptions to States
              with respect to taxation of such gaming or wagering operations
              shall be allowed to Indian tribes.
                `(2) Exemption: The provisions of section 6050I of the
              Internal Revenue Code of 1986 shall apply to an Indian gaming
              establishment that is not designated by the Secretary of the
              Treasury as a financial institution pursuant to chapter 53 of
              title 31, United States Code.
                `(3) Statutory construction: This subsection shall apply
              notwithstanding any other provision of law enacted before the
              date of enactment of this Act unless such other provision of
              law specifically cites this subsection.
            `(c) Access to Information by State and Tribal Governments:
          Subject to section 7(d), upon the request of a State or the
          governing body of an Indian tribe, the Commission shall make
          available any law enforcement information which it has obtained
          pursuant to such section, unless otherwise prohibited by law, in
          order to enable the State or the Indian tribe to carry out its
          responsibil-
          ities under this Act or any compact approved by the Secretary.';
                (3) by striking section 20;
                (4) by redesignating sections 21 through 24 as sections 20
              through 23, respectively; and
                (5) by adding at the end the following new section:
          `SEC. 24. DEFINITION OF FINANCIAL INSTITUTIONS.
            `Section 5312(a)(2) of title 31, United States Code, is amended--
                `(1) by redesignating subparagraphs (X) and (Y) as
              subparagraphs (Y) and (Z), respectively; and
                `(2) by inserting after subparagraph (W) the following new
              subparagraph:
                    `(X) an Indian gaming establishment;'.
          SEC. 3. CONFORMING AMENDMENTS.
            (a) Title 10: Section 2323a(e)(1) of title 10, United States
          Code, is amended by striking `section 4(4) of the Indian Gaming
          Regulatory Act (102 Stat. 2468; 25 U.S.C. 2703(4))' and inserting
          `section 4(16) of the Indian Gaming Regulatory Act'.
            (b) Title 18: Title 18, United States Code, is amended--
                (1) in subsections (c) and (d) of section 1166, by striking
              `section 11(d)(8) of the Indian Gaming Regulatory Act' each
              place it appears and inserting `section 12(a)(2)(B) of the
              Indian Gaming Regulatory Act';
                (2) in section 1167--
                    (A) in subsection (a), by striking `National Indian
                  Gaming Commission' and inserting `Federal Indian Gaming
                  Regulatory Commission established under section 5 of the
                  Indian Gaming Regulatory Act'; and
                    (B) in subsection (b), by striking `National Indian
                  Gaming Commission' and inserting `Federal Indian Gaming
                  Regulatory Commission'; and
                (3) in section 1168--
                    (A) in subsection (a), by striking `National Indian
                  Gaming Commission' and inserting `Federal Indian Gaming
                  Regulatory Commission established under section 5 of the
                  Indian Gaming Regulatory Act'; and
                    (B) in subsection (b), by striking `National Indian
                  Gaming Commission' and inserting `Federal Indian Gaming
                  Regulatory Commission'.
            (c) Internal Revenue Code of 1986: Section 168(j)(4)(A)(iv) of
          the Internal Revenue Code of 1986 is amended by striking `Indian
          Regulatory Act' and inserting `Indian Gaming Regulatory Act'.
            (d) Title 28: Title 28, United States Code, is amended--
                (1) in section 3701(2)--
                    (A) by striking `section 4(5) of the Indian Gaming
                  Regulatory Act (25 U.S.C. 2703(5))' and inserting `section
                  4(17) of the Indian Gaming Regulatory Act'; and
                    (B) by striking `section 4(4) of such Act (25 U.S.C.
                  2703(4))' and inserting `section 4(16) of such Act'; and
                (2) in section 3704(b), by striking `section 4(4) of the
              Indian Gaming Regulatory Act' and inserting `section 4(16) of
              the Indian Gaming Regulatory Act'.

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